Ethereum-based funds also recorded outflows of $237.73 million, breaking a 14-week streak of net inflows.
Vincent Liu, CIO at Kronos Research, told The Block that approval of staking for Ethereum ETFs would increase network activity and could trigger altcoin growth.
“Ethereum is preparing to take center stage,” he said.
Nick Rak, Director at LVRG Research, noted that large holders are reducing Bitcoin positions in favor of Ethereum, expecting further growth of the second-largest cryptocurrency.
This trend is also visible in market dynamics. Bitcoin dominance dropped from 61% at the beginning of the month to 58.17%, according to TradingView, indicating capital rotation into altcoins.
At the time of writing, Ethereum is trading around $4,590 after recently setting a new all-time high above $4,946.
Liu added that in the short and medium term, higher volatility is likely. Traders will closely monitor macroeconomic data, including U.S. jobless claims scheduled for release on August 28.